President Donald Trump just dropped a bombshell at the White House, signaling his impatience to replace Federal Reserve Chairman Jerome Powell with a tenacity that’s hard to ignore.
Newsmax reported that Trump is locked in a public feud with Powell over interest rate policies and now, whispers of mismanagement tied to the Fed’s headquarters renovation costs.
On Tuesday, before a high-profile meeting with Saudi Crown Prince Mohammed bin Salman, Trump faced reporters’ questions about his intentions for Powell’s future. Trump nominated Powell back in 2017 during his first term, but the relationship has soured over time.
The clash has been brewing for months, primarily over Powell’s refusal to slash interest rates as Trump has repeatedly demanded.
Now, with Powell’s term stretching until May 2026, the president isn’t waiting around, hinting at an announcement for a replacement before the year wraps up.
Adding fuel to this fire, there’s a buzz that Trump might leverage the controversy over skyrocketing costs for the Federal Reserve’s headquarters renovation as a reason to push Powell out.
The Fed, however, stands firm, denying any misconduct and insisting the White House has no say over its facilities management.
It’s a classic standoff—Trump’s itching for change, while the Fed digs in its heels, claiming autonomy. Speaking to reporters, Trump didn’t mince words, saying, “I'd love to get the guy currently in there out right now, but people are holding me back.”
That’s vintage Trump—blunt and unapologetic, though one wonders if this public pressure helps or hinders his cause, with advisors urging caution.
He didn’t stop there, adding, “He's a fool. He's a stupid man,” in a jab at Powell that underscores just how personal this fight has become.
With a replacement on the horizon, Trump has narrowed down a short list of five contenders for Powell’s chair, including Fed Vice Chair for Supervision Michelle Bowman and White House National Economic Council Director Kevin Hassett.
Others in the mix are Fed board member Christopher Waller, former Fed board member Kevin Warsh, and BlackRock Fixed Income Chief Investment Officer Rick Rieder, showing a blend of insiders and fresh faces.
Interestingly, Treasury Secretary Scott Bessent, once backed by Trump for the role, has opted to stay put at Treasury, aligning with the president’s view that he’s better suited there.
From a conservative vantage point, Trump’s push to shake up the Fed isn’t just personal—it’s about wresting control from a bureaucracy that often seems tone-deaf to the struggles of everyday Americans facing high borrowing costs.
While Powell’s defenders might argue for central bank independence, many on the right see Trump’s frustration as a justified stand against an unelected elite dictating economic policy without accountability.
Yet, let’s be fair—dismissing someone mid-term over policy disagreements risks setting a precedent that could backfire under future administrations, a concern even some conservative minds might ponder.
Trump’s desire for a Fed chairman who aligns with his vision of lower rates to boost growth resonates with those tired of progressive policies that prioritize caution over prosperity. Still, the question lingers—can this be done without undermining the stability markets crave?